#bitcoin, serious question: how do you solve the problem that coins continue to be taken out of circulation by a few big hoarders with a lot of money in reserve?
The way I understand it, the people who need to start *using* their bitcoin first aren't the one who will massively hoard. (Just as with money now.)
I don't think Bitcoin really solves Pareto distribution.
Over time the trend is definitely whales distributing their coins as their value goes up, but it's not guaranteed.
Okay, so there is an assumption that 'whales' will continue/reinvigorate the circulation.
Because, the thing with digital assets is also: if you lose your keys, these coins will be locked for a long time. And the very admirable trend #bitcoin uses to converge towards the 21 million coins and then you have a mathematically guaranteed supply, does not (and arguably *should not*) correct for human accidents, but that does not mean that there is a undeniable and unremovable factor that reduces circulation. (Talking specifically about the loss case.)
And my first point demotivates circulation, which is healthiest with a most balanced distribution. (Balanced as in evenly distributed number of coins.)
The significance lies in the trend rather than the current state. In traditional fiat systems, wealth increasingly accumulates among the top 1% (refer to image 1). Conversely, Bitcoin demonstrates a trend where wealth is progressively distributed to the lower echelons (refer to image 2). Envisioning a complete Bitcoin standard, wealth would flow towards the productive, contrasting with the current scenario where proximity to the money printer determines wealth distribution.
See also this analysis for more info on Bitcoin distribution trends:
https://insights.glassnode.com/bitcoin-supply-distribution-revisited/amp/
„An increasingly large proportion of supply is held by smaller entities representative of retail holders, with Shrimps (< 1BTC) and Crabs (< 10 BTC) absorbing a remarkable 2.25x more coins than were mined in 2022.“ 
Hmm.. you make an interesting remark: my thought process includes the transition period in which a monetary currency is also at play. There is the weakness probably, because it becomes an arms race for being the one who can hoard the longest. However, with only Bitcoin in circulation -- or rather #Bitcoin as lead currency -- one would need to spend to get anything accomplished.
And quickly thinking ahead, this should hold even if on a local level any other coin or currency is applied, and Bitcoin is a global currency.
Certainly, in a Bitcoin standard, productivity becomes pivotal for wealth preservation, as it naturally gravitates toward the industrious. Notably, even during the transitional phase, glassnode analysis reveals an increasing absorption of Bitcoin by lower brackets. This phenomenon may stem from the realization that wealth isn't merely about money but the experiences and investments it affords. As people accumulate, they tend to channel resources into enriching their lives, be it through real estate, travel, or supporting innovative Bitcoin startups aimed at fostering positive change. Dispelling the myth, it seems people are inclined to deploy their wealth rather than hoard it excessively.
